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Use the information given in the income statement to answer the question that follows. ...

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Finance

Use the information given in the income statement to answer the question that follows.

Cute Camel Woodcraft Company

Income Statement

Years Ending December 31
Year 2 (Forecasted) Year 1
Net sales 18,750,000 $15,000,000
Fixed operating costs, except depreciation and amortization (11,250,000) (9,000,000)
Depreciation and amortization expenses (600,000) (600,000)
Net operating income (or EBIT) 6,900,000 $5,400,000
Interest (1,035,000) (540,000)
Earnings before taxes (or EBT) 5,865,000 $4,860,000
Taxes (40%) (2,346,000) (1,944,000)
Net Income 3,519,000 $2,916,000
Preferred dividends (200,000) (200,000)
Earnings available to common stockholders (EAC) 3,319,000 $2,716,000
Common dividends (1,055,700) (874,800)
Addition to retained earnings $2,263,300 $1,841,200

Cute Camels before interest, taxes, depreciation, and amortization (EBITDA) value changed from __________ in Year 1 to _______ in Year 2.

Options for year 1

$6,000,000

7,344,000

8,316,000

14,400,000

Options for year 2

$10,419,000

7,500,000

19,785,000

14,769,000

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